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Canon to provide multifunction printers to HP

September 20, 2009

Canon to provide MFDs to HP

Here is the Reuters Link, so that you can read the story for yourself. This is a move that a number of industry analysts predicted after Ricoh bought Ikon. No one expected Canon to sit on their hands and not try to take back the market share that Ikon provided to Canon.

HP & Canon are two of the biggest and most respected names, each in their own space. This agreement could have interesting effects on the market place. HP has long desired to enter the MFD space. They have had several of less than successful attempts with the Mopier, and more recently their Edgeline MFD products. But this deal will help HP overcome one of their two major hurdles. It will provide HP with a great product line of MFDs to sell. A product line that is well established and well respected. Initially labeled as Canon MFDs, but eventually HP will put their own label on these MFDs.

But there still remains one other significant hurdle that HP will need to address if they are going to be successful in this space, and that is service. I am talking about MFD service, not traditional printer service. There is a difference between the two. End users have come to expect a 4 hour or less response time for their MFDs. MFDs are typically a little too big to have one in your trunk so you can swap it out, and then repair the printer\MFD when you get a round to it. That won’t work in this space.

Maybe they will take a page out of their Mopier play book. When the Mopier was first introduced HP invited a number of large Independent Canon Dealers to come out to Boise, Idaho and take a look at it. They were looking to put together a ready made service department for their new product. I was one of the people invited by HP to look over the product. Unfortunately the Mopier did not get picked up by a large number of dealers, and those that did pick it up did not have great success. This was a brilliant  move by HP, they just didn’t have a product that would really shine in the MFD market space.

But now they do have a great, proven product line (The full line of Canon MFD products). There are also a number of very large regional independant Canon Dealers that HP could approach to solve their service issue. It could be an interesting discussion for both HP and the large independent Canon dealers. They were smart enough to do it once, but maybe they were just ahead of their time.

That’s my $0.02
Vince McHugh
vince.mchugh@yahoo.com

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One comment

  1. This will not be good for Independent Canon Dealers. We will now begin to see the scaling back of aggressive pricing to move the current Canon products and more realistic pricing on the new Canon models. Those Independent Dealers that have had Canon for quite some time, or just picked up the Canon line after the Rioch acquisition of IKON, will start to focus on their other Manufacturer product lines, while Canon and HP get cozy during the honeymoon. Canon just got it’s distribution back!



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